As special counsel Robert Mueller builds his case, relatives of former National Security Adviser Michael Flynn are among those pressing the president to use his unique legal power and ‘put these defendants out of their misery.’

Since taking office, French President Emmanuel Macron has portrayed himself as a champion of Europe. He has promised to make the EU stronger and more protective, in a lengthy and widely followed speech at the Sorbonne in September.

Not everybody’s buying it. Six months into his term, a growing chorus of critics is accusing the French President of veering into a form of soft protectionism, putting the European single market at risk.

Macron, critics say, is using the departure of Britain — long Europe’s most powerful defender of the single market — to shift the EU toward a more protectionist agenda, aided by a German leadership worried about the prospect of a rising far-right.

Among other strikes, they cite the following French-led moves as going against the spirit of the single market: an overhaul of posted worker rules; France’s temporary nationalization of shipyards; its embrace of geographic indicators for dairy products; and plans to allow limited price fixing for agricultural products.

“As long as Britain was in the European Union, there was a division of labor, with the U.K. as the voice of free trade and defender of the single market,” said Nicolas Véron, an analyst at the Bruegel think tank in Brussels. “The departure of the U.K. changes that game, with the Netherlands and Scandinavia becoming more vocal on these issues, while France is taking more of a leadership role.”

“Macron is in line with [President Jean-Claude] Juncker, who says that if Europe doesn’t respond a bit better to citizens’ expectations, they will turn against it” — Anonymous French diplomat

And while Macron has reaped praise for his ambitious approach to Europe — calling for a shared European “strategic culture” — when it comes to trade and the single market, time after time, the French President has taken measures his critics describe as erecting barriers and favoring French interests.

Interventionist tendencies

For those who have followed Macron’s trajectory over the past five years, his criticism of unfettered free trade is nothing new. As economy minister, he crusaded for tougher rules against dumping of Chinese steel products in Europe.

But he also allowed a number of foreign takeovers of French companies, marking a clear break with the France-first, interventionist ideology of his predecessor, Arnaud Montebourg.

It was only when Macron swept to the presidency in May that he showed his own interventionist tendencies, beginning with his move to block an Italian takeover of STX shipyards in eastern France and nationalize them temporarily.

His willingness to break a taboo on nationalization, going further than his socialist predecessor, raised alarm among free-traders: Would European leaders now simply invoke “strategic” reasons to block any takeover they did not like?

Especially confusing was the fact that, a few years earlier, France had authorized a Korean firm to acquire the STX shipyards without argument.

“Newly elected French President Emmanuel Macron wants to revive an old French ambition, namely to exclude a larger number of French companies from EU takeover regulations,” Frits Bolkestein, former European commissioner for the internal market, customs and taxation, wrote in POLITICO in June.

“The Commission would do well to issue a sharp reminder that countries are not allowed to introduce measures that ‘could jeopardize the attainment of the Union’s objectives,'” he added.

Then came Macron’s campaign to rewrite EU rules on posted workers. Seeking to shorten the duration of postings and harmonize social fees, it infuriated leaders in Central and Eastern Europe who interpreted the move as an assault on their economic models.

In one memorable clash, Polish Prime Minister Beata Szydło accused the new French president of being “arrogant” and inexperienced. “Perhaps his (Macron’s) arrogant comments result from lack of political experience,” she said in August.

A Central European diplomat accused Macron of simply repackaging old French protectionism: The only thing new “is the strength of the rhetoric.”

Macron prevailed to the outrage of several EU states, including Spain. The French-led charge was a blow to the Spanish economy with its legions of expatriated workers and a strike against the principle of free movement of people and services, Spanish officials argued at the time.

If Macron’s critics hoped he would rest after his diplomatic victory on posted workers, they were disappointed.

With Britain sidelined and German Chancellor Angela Merkel unable to act following the failure of talks to form a governing coalition, Macron is pressing ahead with initiatives that all have implications for the single market.

These include: France’s embrace of geographic indicators for dairy products, at Belgium’s expense; plans to ban the herbicide glyphosate well before an EU authorization lapses in five years’ time; and measures to allow for limited price fixing on agricultural products, part of an “estates general” on farming.

And while Macron is a keen supporter of a digital single market, he also pressed for taxation of web-based firms revenue — an idea that industry players said would damage the level playing field.

For Swedish liberal MEP Jasenko Selimovic, Macron represents a growing trend across the bloc, where governments push protectionism to fend off the threat of populist parties.

The French President has not rested on his laurels after a diplomatic victory on posted workers | Philippe Huguen/AFP via Getty Images

“I think the single market is being damaged from all sides,” he said. “This is a serious problem, because if you cannot move people around the European Union, you cannot move commodities or services either, and this is being defined as one of the major problems in the Brexit case.”

Antidote to populism

Quizzed about Macron’s approach to the single market, French officials argue that his European detractors are missing the point.

The French president, they say, is trying to strengthen the EU against abusive foreign trade practices with tougher anti-dumping tools — a measure they say will bolster, not undermine, the single market.

French initiatives to support of farmers, meanwhile, fall outside the strict purview of the single market because agricultural policy has always been in a league of its own. “Agriculture is completely separate,” said Véron.

On posted workers, they argue that France is not hurting the single market, because Macron’s initiatives apply to all EU members and aim to harmonize social and living standards across the bloc in order to promote labor mobility.

“I think we’ll damage Europe by closing it, by making it more protectionist and at the same time, not having the extreme right falling in the polls” — Swedish liberal MEP Jasenko Selimovic

What’s more, they say critics are missing out on Macron’s political aim with posted workers and takeover defenses: He is trying to address concerns about the single market that have contributed to the rise of populist forces across the bloc, bringing National Front President Marine Le Pen within striking distance of the French presidency.

“Macron is in line with [President Jean-Claude] Juncker, who says that if Europe doesn’t respond a bit better to citizens’ expectations, they will turn against it,” said a French diplomat. “The only thing is that Macron is more straightforward than other leaders on this issue. We can’t leave a door open to populists.”

Selimovic, the Swedish liberal, said he understood Macron’s intentions, and could see that the approach is bearing results. But he worried that by the time the French president is finished, there would be little left of the single market as it existed in the early 2000s.

“I think we’ll damage Europe by closing it, by making it more protectionist and at the same time, not having the extreme right falling in the polls,” said Selimovic. “We could end up with a double problem.”

Related stories on these topics:

HP

“Too often, the defenders of free markets forget that what we really want is free men.”
Matthew B. Crawford

The choice is between the nut jobs in power or some common sense limits to the “free market”. Of course, the likes of Bolkestein seem to have a soft spot for the nut jobs, at least those on the right, so perhaps their defence of the “free market” isn’t exactly what it seems to be.

Posted on 12/1/17 | 8:35 AM CET

Alexandre

Looks like socialists again are bravely fighting with problems created by socialism.
To the last centime of taxpayers’ money….

Posted on 12/1/17 | 8:52 AM CET

:P

What do you expect if you elect an 8%er as president?

Posted on 12/1/17 | 9:35 AM CET

Manfred

Just another cake and eat it Frenchman.

Posted on 12/1/17 | 11:44 AM CET

Bernhard W

What path the EU will take now that France and Germany can dictate the course ?

Posted on 12/1/17 | 11:56 AM CET

Saintixe

But he worried that by the time the French president is finished, there would be little left of the single market as it existed in the early 2000s.
Damned if you do and damned if you don’t.
Hollande was blamed for doing nothing and Macron is blamed for trying to do something.
Make up your mind, guys.

Posted on 12/1/17 | 2:04 PM CET

GD

It’s true the single market as it was in early 2000s brought splendid results and proved invaluable when the economic crisis erupted.

This is not the single market these people are defending but neoliberal politics. Fighting dumping in any form is not against free trade or the single market but aims at ensuring their proper functioning.

Posted on 12/1/17 | 2:33 PM CET

giraud jean-guy

Sir, you have selected four cases of “anti-liberal” measures proposed by France :
– protection against chinese dumping
– rationalisation of circulation of posted workers
– transparence in geographical origins of products
– limited time extension of glyphosate use
– taxation of foreign based web firms
– minimum price for basic agricultural products.
I suggest you might wait for more significant proofs of “protectionnisme”.

JGGiraud

–

Posted on 12/1/17 | 2:39 PM CET

FierEuopean

The Single Market is in safe hands post brexit… chuckle.

Posted on 12/1/17 | 3:34 PM CET

trisul

A strange selection of policies to be lumped together as protectionist. Yes, nationalisation of a company is such a move, but setting rules for posted workers is a different matter altogether. Bulgarian workers posted to France should be part of the French economy, not the Bulgarian economy, at least while they work in France. Otherwise, French companies will be forced to move to Bulgaria and post their workers back to France. This is not an open market, it is fraud and deception.

Posted on 12/1/17 | 4:59 PM CET

guilherme

trisul,
so French companies in Bulgaria should be considered as part of Bulgarian economy and no profits should be transferrd to France.

Posted on 12/1/17 | 5:37 PM CET

wow

Nice eyebrows. Good foundation cream, but the lipstick is too much.

Posted on 12/1/17 | 7:09 PM CET

Jeroen Valcke

Very biaised article! The EU s objective is not to protect trade but to protect its citizens. Who is politico running for? Very disappointing journalism! I hope you will make excuses for quoting the polish prime minister as a source of truth and justice…interalia. The eu is not a football competition ground for boys ! We need a caring europe which creates well being . Trade is a mean not an end

Posted on 12/2/17 | 11:11 AM CET

bandib

@ wow. Agreed.

Posted on 12/2/17 | 1:23 PM CET

Vishnou

A Frenchman remains a Frenchman, especially a “Jupitarian” one 🙂 France above all, provided it can rely on the EU to restore credibility. Macron is on all fronts: doesn’t spare any effort to bring France back to its former glory. He deploys incredible energy to achieve his goals. He is so much brighter than potus in is approach! Congrats! Keep on working, Emmanuel. 🙂

Posted on 12/2/17 | 5:26 PM CET

Grown Up

Macron is probably the biggest EU ‘populist’ ‘populists’ have had in present times . But as ‘populist’ is a dirty word in the EU at present, as well as nationalist, what exactly does Macron represent?? Oh that’s right an EU popularist ??? Confused… who wouldn’t be???

Posted on 12/2/17 | 7:05 PM CET

freddie silver

@ Vishnou,
As usual, utterly confused and unsurprisingly wrong again. It happens when one does not understand the subject:
“.. to bring France back to its former glory..”
It is not about France; it is about the EU. The time of individual countries is past says the EU. We are in this together.
As a defender of the EU one should know what is being defended.

Posted on 12/2/17 | 8:06 PM CET

John Brown

If Mr. Macron’s policies appear confusing that is because as President of France he is only interested in pursuing EU structures and regulations that beneft France.

No different to past French Presidents.

Posted on 12/3/17 | 9:35 AM CET

Alex

I’m not exactly sure how the posted workers reform is a protectionist move. It would be interesting to compare it to the US, where, as far as I know, state labor laws generally apply to any worker within the state, however short their stay.

BinPL

Of the cases cited at the top of the article, only the temp. price fixing of agri goods would worry me if the EU didn’t already meddle in the ag market already. The others are perfectly reasonable areas to have concerns and to try to fix imbalances in the single market. If France gets exactly what it wants in the negotiations, then that’s a political matter. The posted workers issue is one in which I foresee a middle ground of transfer companies … anyone involved in temporary work such as shipping/trucking in another MS than their home state would operate through a one or more resident companies, which would bill the original firm, until the workers’ return to their home state, being paid proximate rates and complying with local rules. That may seem more complicated and bureaucratic until we consider the effort it would take for small firms, especially those in CEE states, to implement rules on posted workers for every driver/truck/state they operate. There are many other ways, but simply paying a Polish driver full French wages and benefits is out of the question and French drivers would never work for Polish rates. There’s middle ground to be found.

Posted on 12/4/17 | 10:56 AM CET

Rafael

For the unaware reader, French politics has always been about protectionism and about serving its own interests. Such is also the case with Germany, Spain, Italy and Great-Britain. And because Great-Britain felt that it could not sufficiently protect its interests, it decided to leave the EU Phantasialand.

But while for many it seems to be absolutely legitimate that Western European countries protect their own interests, at the same time you can observe a huge outcry and outrage by EU officials and various Western governments when Eastern and Southern Europe are trying to protect their own interests in the same manner as well.
You hear that this is “not acceptable” and very quickly these smart Western leaders are coming up with punishments and sanctions against competition from the cheaper countries.

Ok, let’s cut the crap then. Let’s play the game in a different way. If Eastern European companies need to pay their workers the adjusted salary/rates while they are being in these countries and by those means sabotage their “competitiveness”, we should also stop the low-cost labour exploitation of Western companies which produce their “products” in Eastern Europe to generate higher profits, shouldn’t we?
Why should it be ok for Western companies to manufacture their products in Eastern Europe for 1/5 of the labour costs and then sell those products with much higher profit margins?!
Let’s make the companies then pay the workers in Poland, Czech Republic, Slovakia, Hungary, Bulgaria and Romania the same salaries as French or German companies would do in their countries.

You cannot have it both ways, profit from low-cost production and less regulated labour markets in Eastern Europe but then ask for “fair and adjusted treatment” of foreign workers and businesses to protect its own economy and companies.

Posted on 12/12/17 | 4:23 PM CET

Vishnou

@Rafael
The problem is that West European companies hire detached workers to increase their own profits irrespective of disastrous working conditions. Such companies should be properly sued and the home countries of such workers strongly “encouraged” to fight against corruption.

Posted on 12/14/17 | 12:07 PM CET

Rafael

@Vishnou
absolutely true.

There are many bad things going on and somehow knowingly tolerated or accepted despite the fact that they are against certain standards of ethics, human rights.

I will just name 2 very prominent examples of very large Western players who are/were breaking various laws when it comes to exploiting workers.

One is the famous “Amazon” which was already accused multiple times of very bad working conditions which resemble slavery or working camps of former times.

Another one was the large-scale cost dumping practiced by the German meat manufacturing industry. France and Belgium even filed a lawsuit against Germany for that reason a few years ago.

In both cases workers from Eastern and Southern Europe have been brought to Germany through some dubious agencies and put to work under extremely bad conditions of pay, health and safety standards, and really shocking living conditions.
And all of this in Germany in the 21st century!!!

Who would have thought that this is still possible today?!

Posted on 12/15/17 | 11:33 PM CET

Mike

Jasenko Selimovic is not considered serious in Sweden.

Posted on 12/16/17 | 9:20 PM CET

Montelieri

What utter nonsense. The article is turning causality back to front by implying that too much protectionism was the cause for Brexit. It was quite the opposite: the Brits are exiting the Single Market because of too much free movement!

This article is just a piece of agit. prop. aimed at dividing Continental Europe: play the Netherlands against France against Poland and Czeck Republic.
It is not going to work.